AARON’S LOUISVILLE, KENTUCKY
CONFIDENTIAL OFFERING MEMORANDUM CONTENTS PRESENTED BY
NEAL PRINGLE 3 Director of Investment Sales EXECUTIVE P 770.955.2434 SUMMARY [email protected]
ADAM BIRNBREY Senior Investment Sales Advisor 10 P 770.955.2434 LOCATION [email protected] OVERVIEW REID BURT Associate P 813.530.2773 16 [email protected] DEMOGRAPHICS KEITH VALENTINE Senior Vice President P 678.718.1882 [email protected] EXECUTIVE SUMMARY INTRODUCTION
SITE PLAN
TENANT PROFILES
LEASE ABSTRACTS
FINANCIAL ANALYSIS NORTHEAST
GE APPLIANCE PARK JEFFERSON COMMONS JEFFERSON MALL
NEW APARTMENT COMPLEX ®
OUTER LOOP (27,900 AADT)
PRESTON HIGHWAY (24,500 AADT) EXECUTIVE LOCATION HOME DEMOGRAPHICS SUMMARY OVERVIEW 5
1999 100% 8.75% 10,000 $ 73,108 0.80 Acres $ 835,500 8022 Preston Hwy Louisville, KY 40219
ADDRESS ADDRESS GLA (SF) LAND ACREAGE YEAR BUILT OCCUPANCY NOI PRICE CAP RATE AARON’S - LOUISVILLE, KY – TSCG.COM
TSCG is pleased to offer for sale the opportunity to purchase a freestanding Aaron’s (the “Property”), located (the “Property”), located pleased to offerTSCG is the opportunity for sale a freestanding Aaron’s to purchase The Property has a long history at this location with over 20 in Louisville, Kentucky. at 8022 Preston Hwy with one, 5–year option to renew. executed a 5–year lease extension recently Aaron’s years of occupancy. PropertyThe the highly traffickedalong is situated corridor. retail dynamic in a AADT) (24,500 Hwy Preston Ross, Round 1, JCPenney, sf Jefferson includes the 904,967 (Dillard’s, Mall from Aaron’s Less than one mile sf JeffersonOld Navy); 205,858 Commons (Academy Sports, Five Below); 168,697 Aldi, Michaels, Ulta, Shopping PetSmart,Staples, 105,529 sf Tymberwood and Maxx); TJ at JeffersonFestival sf Court (Kroger, Tree). CVS and Dollar Center (Best Buy, INTRODUCTION INVESTMENT HIGHLIGHTS
P N A 24 500 AA • Recent 5–year lease extension
• Over 20 years of occupancyB A N at P A this location
• Adjacent to intersection of Preston Hwy and Outer Loop (52,000+ AADT)
• Nearly 2 million sf of retail within 1–mile radius
• Notable major retailers in immediate vicinity include Walmart, Home Depot, Kroger, Target, Academy, Best Buy, Michaels, Aldi, Dillard’s, Ross and TJ Maxx A P • Minutes away from Louisville International Airport (3rd busiest cargo airport in US)
• 7 miles south of University of Louisville (22,000+ students)
N • 171,000+ people and 68,000+ N homes within a 5–mile radius
N
A A EXECUTIVE LOCATION HOME DEMOGRAPHICS SUMMARY OVERVIEW 7
1955 Public Atlanta, GA Atlanta, Aaron's, Inc. Aaron's, NYSE: AAN
1,600+ (US and Canada) and (US 1,600+ AARON’S - LOUISVILLE, KY – TSCG.COM Company NameCompany Number Locations of Founded Year Ownership On Traded Headquarters Headquartered in Atlanta, Aaron’s is a leader in the lease ownership of is a leader in the lease ownership of Headquartered in Atlanta, Aaron’s name brand furniture, consumer electronics and home appliances. The the expectation to provide customers company was founded in 1955 with model lease–to–own products. The highest quality the on deal best the footprint to expanding the company’s helped fill a big void in the market, of company–operated and franchised 1,600+ stores today (combination stores) in 47 states and Canada. employs a staggering 11,900 employees (2017) and is an S&P Aaron’s which went public in 1982, trades on the 400 Component. The company, annual Stock Exchange under the ticker symbol: AAN. Aaron’s New York a 13.16% increase from 2017. revenue for 2018 was $3.829B, TENANT PROFILE – WALK ON’S WALK – PROFILE TENANT EXECUTIVE LOCATION HOME DEMOGRAPHICS SUMMARY OVERVIEW 8 Annual Base Rent Monthly Base Rent
PSF Base Rent Option Years Annual
Base Rent
AARON’S - LOUISVILLE, KY – TSCG.COM Aaron's, Inc. d/b/a Aaron's d/b/a Inc. Aaron's, 5 Years 1999 1, April 2024 March 31, 5–year option One (1), SF 10,000 0.80 acres 1999 TheDemised shallbe Premises used lawful forany as an salesretail use, and excludes home any uses. improvement store, Purchase Rental Aaron’s expense not to exceedLandlord’s $8,000 responsibility Landlord's responsibility Landlord's Thirty days after written (30) Landlord's request. may not nor assign Tenant sublease without the consent of Landlord. Monthly Base Rent PSF Base Rent AARON’S LEASE ABSTRACT AARON’S RENT SCHEDULE Lease Years 1–5 $9.60 $8,000.00 $96,000.00 6–10 $10.08 $8,400.00 $100,800.00 Tenant Term CommencementRent Date Lease Expiration Date Options Building Size Acreage Land Built Year Uses Permitted CAM Taxes Insurance Estoppel Certificate Assignment and Subleasing LEASE ABSTRACT
EXECUTIVE LOCATION HOME DEMOGRAPHICS SUMMARY OVERVIEW 9 $– $2,500 $8,000 $8,000 $22,892 $73,108 $12,392 $96,000 $96,000 $96,000 $96,000
. ve expense is $0.25 PSF. axes are based on 2018 property tax records. CAM is capped at $8,000 per year T Capital Reser Potential Base Rent Potential Vacancy Absorption & Turnover Scheduled Base Rent CAM Taxes PSF) Reserve ($0.25 Capital
AARON’S - LOUISVILLE, KY – TSCG.COM RENTAL REVENUE RENTAL Rental Revenue Total OPERATING EXPENSES Expenses Operating Total INCOME NET OPERATING 2. 3. NOTES 1. FINANCIALANALYSIS LOCATION OVERVIEW LOCATION MAP
TRADE AREA ZOOMED OUT
TRADE AREA ZOOMED IN
LOUISVILLE, KY OVERVIEW SOUTH
SOUTHERN HIGH SCHOOL 1,248 STUDENTS
PRESTON HIGHWAY (24,500 AADT)
EXECUTIVE LOCATION HOME DEMOGRAPHICS SUMMARY OVERVIEW 15 AARON’S - LOUISVILLE, KY – TSCG.COM TRANSPORTATION TRANSPORTATION that pass–through The three major interstate highways city of Louisville Louisville include I–64, I–65 and I–71. The shipping sectors. has become a big hub for the cargo and main airport, Louisville International Airport, is Louisville’s Worldport UPS’s centrally located in the city and home to of cargo pass global air hub. Over 4.7 billion pounds Due to this, the airport is through the airport annually. the third busiest airport regarding cargo traffic. in the US Louisville International Airport is located one exit north of the Property. EDUCATION city: University of There are six, four–year universities in the Louisville (22,459 students), Bellarmine University (3,973 Spalding students), (2,900 University Sullivan students), (1,235 students) University (2,322 students), Boyce College students). and Simmons College of Kentucky (219 mascot) is touted The University of Louisville (Cardinals athletic programs. for its success in the medical field and National Institutes The school consistently ranks top in the of Health rankings and is a contender year–after–year in 7 basketball, baseball and football. U of L is located men’s miles north of the Property.
500 companies: Humana and Yum Brands. 500 companies: Humana and Yum Additional major employers to the city include two Fortune two city include the to employers major Additional headquartered in Louisville and is a Fortune 1000 company. headquartered in Louisville and is a Fortune 1000 company. Forman, one of the major makers of American whiskey, is is Forman, American whiskey, one of the major makers of manufactured in the US comes from Louisville. Brown– manufactured in the US comes from the American Whiskey industry. One–third of all bourbon One–third of all bourbon the American Whiskey industry. (157,000+ visitors annually), Louisville Slugger bats and Slugger bats and (157,000+ visitors annually), Louisville Ford plants, Kentucky Fried Chicken, the Kentucky Derby Kentucky Derby Ford plants, Kentucky Fried Chicken, the Other major industries within the city include two major include two major Other major industries within the city hub for UPS is located at the Louisville International Louisville the at located is UPS for hub Airport. and cargo industry. Today, the Worldport global air–freight global air–freight the Worldport Today, and cargo industry. and I–71) also contributes to its importance to the shipping importanceits to contributes also I–71) and shipping the to proximity to three major interstate highways (1–64, I–65 (1–64, I–65 proximity to three major interstate highways Louisville a pivotal location for the transfer of cargo. The city’s of cargo. The city’s Louisville a pivotal location for the transfer road travel to over half the cities in the US) has made US) has made road travel to over half the cities in the convenient location in the central United States (one day’s States (one day’s convenient location in the central United organizations across several industrial classifications. It’s classifications. It’s organizations across several industrial Louisville is home to a handful of companies and companies and Louisville is home to a handful of Slugger bats and two Fortune Slugger bats and two 500 companies. BUSINESS Chicken, University of Louisville, Muhammad Ali, Louisville of Louisville, Muhammad Ali, Louisville Chicken, University known as the home to the Kentucky Derby, Kentucky Fried Kentucky Fried to the Kentucky Derby, known as the home population of approximately 1.3 million. Today, Louisville is Louisville is 1.3 million. Today, population of approximately Jefferson county and 12 surrounding counties) with a total Jeffersontotal a with counties) surrounding 12 county and of the Louisville–Jefferson County, KY–IN MSA (Louisville– KY–IN of the Louisville–Jefferson County, part The city is part the border of Indiana. of Kentucky along populous city in the US. Louisville is located in the northern is located in the in the US. Louisville populous city The largest city in Kentucky, Louisville is the 29th most most 29th the is Louisville Kentucky, in city largest The LOUISVILLE,KY DEMOGRAPHICS RADII
DRIVE TIMES NORTH
BRAND NEW 552–UNIT APARTMENT COMPLEX
PROPOSED NEW RETAIL DEVELOPMENT
OUTER LOOP (27,900 AADT)
PRESTON HIGHWAY (24,500 AADT)
EXECUTIVE LOCATION HOME DEMOGRAPHICS SUMMARY OVERVIEW 18 AARON’S - LOUISVILLE, KY – TSCG.COM RADII
EXECUTIVE LOCATION HOME DEMOGRAPHICS SUMMARY OVERVIEW 19 AARON’S - LOUISVILLE, KY – TSCG.COM DRIVE TIME WEST
LOUISVILLE INTERNATIONAL AIRPORT 3RD BUSIEST CARGO AIRPORT IN US
22,000+ STUDENTS (128,000 AADT)
PRESTON HIGHWAY (24,500 AADT) DISCLAIMER
This Offering Memorandum has been prepared by TSCG for The Offering Memorandum does not constitute a representation This Offering Memorandum and the contents, except such use by interested parties to evaluate the potential acquisition that there has been no change in the business or affairs of information which is a matter of public record or is provided of Aaron’s located in Louisville, Kentucky (the “Property”). All the Property or Owner since the date of preparation of the in sources available to the public, are of a confidential nature. projections have been developed by TSCG, Owner and Offering Memorandum. Analysis and verification of the By accepting this Offering Memorandum, you agree that you designated sources, are based upon assumptions relating to information contained in the Offering Memorandum is solely will hold and treat it in the strictest confidence, that you will the general economy, competition, and other factors beyond the responsibility of the prospective purchaser. not photocopy or duplicate it, that you will not disclose this the control of TSCG and Owner, and therefore are subject to Offering Memorandum or any of the contents to any other entity variation. No representation is made by TSCG or Owner as Additional information and an opportunity to inspect the (except to outside advisors retained by you, if necessary, for to the accuracy or completeness of the information contained property will be made available to interested and qualified your determination of whether or not to make a proposal and herein, and nothing contained herein is or shall be relied on as prospective investors upon written request. Owner and TSCG from whom you have obtained an agreement of confidentiality) a promise or representation as to the future performance of the each expressly reserve the right, at their sole discretion, to reject without the prior written authorization of Owner or TSCG and Property. Although the information contained herein has been any or all expressions of interest or offers regarding the property that you will use the information in this Offering Memorandum obtained from sources deemed to be reliable and believed and/or terminate discussions with any entity at any time with for the sole purpose of evaluating your interest in the property to be correct, TSCG, Owner and its employees disclaim or without notice. Owner shall have no legal commitment or and you will not use the Offering Memorandum or any of the any responsibility for inaccuracies and expect prospective obligations to any entity reviewing this Offering Memorandum contents in any fashion or manner detrimental to the interest of purchasers to exercise independent due diligence in verifying or making an offer to purchase the property unless and until Owner or TSCG. If you have no interest in the property, please all such information. Further, TSCG, Owner and its employees such offer is approved by Owner, a written agreement for the return the Offering Memorandum to TSCG. disclaim any and all liability for representations and warranties, purchase of the property has been fully executed, delivered and expressed and implied, contained in, or for omissions from, approved by Owner and its legal counsel, and any obligations © 2019 TSCG All Rights Reserved the Offering Memorandum or any other written or oral set by Owner thereunder have been satisfied or waived. communication transmitted or made available to the recipient.
AARON’S - LOUISVILLE, KY – TSCG.COM 21 NEAL PRINGLE ADAM BIRNBREY REID BURT KEITH VALENTINE Director of Investment Sales Senior Investment Sales Advisor Associate Senior Vice President P 770.955.2434 P 770.955.2434 P 813.530.2773 P 678.718.1882 [email protected] [email protected] [email protected] [email protected]